Business nowadays are making the transition to Cloud Based Systems. This is because they’ve become frustrated with their “in-house” system and see the need to adapt in order to see benefits.  This reflects the progress of companies and their desire to focus on business rather than their IT setup.

This decision is one that must be made with caution as a number of products that market themselves as “Cloud Based Solutions” are not in fact actually selling your company anything of the sort. Many companies are trying to re-brand their in-house systems as cloud but are simply putting up a fake screen. They do this by modifying their software so they can be accessed online. But this is not the same as a ‘real’ Saas. “In-House” solutions cannot compete with true cloud computing.

There are many questions you must ask a company or partner before you invest in a solution, to prevent your companies’ money being wasted in a ‘Fake Cloud’ system.

Who Runs the Server House?

True Cloud providers tailor their products to their clients, their expertise mean that they code software to perform better as a fully hosted system. They host, maintain and manage their software across many severs which had multiple levels of data redundancy in multi-tenant environments. All customers usually gain access from the same cloud, giving them constant updates and fast access. True Cloud providers also allow for advanced customisation; these continue to work even if a new segment or update of the product is introduced.

Fake Cloud Vendors work differently. Their solutions are described as ‘cloud’ but are designed to run in house. They usually do not host, manage or maintain their solutions, and therefore leave that to a local value added reseller or another service provider.

Fake Cloud Features

By purchasing an in house solution that’s hosted by a third party company, it will cost a lot of irritation. Many of the problems will still exist from your old in house solution. It would be even slower because of the access rate as it’s no longer installed on your servers. Also if any issues do arise then your will have to get in contact with your 3rd party host to resolve them.

  • Slow and Painful Updates, because the solution is hosted by a 3rd party provider, to upgrade the software it’s time-consuming and expensive. 3rd party providers also have many other customers to deal with at once, so it’s up to them when they choose your company to receive an update or installation of the new system. Vendors will need to upgrade each customer in turn, therefore meaning it could take excessive time from months to years to get an update, by which a new update may have already come along.
  • Expensive, unreliable integration’s and customisation’s, working a hosted solution with other applications, causes problems and is rather costly. It also can be unstable because the ‘in house’ product was not designed for hosting and therefore was not intended for integration with other systems. Customization may also cost considerable amounts because it needs to meet specific needs while also being hosted. You cannot service customisations yourself and have to wait for an engineer to be called out which can turn into expensive fees rather quickly.
  • Long Downtime and poor Security/Support, Due to limited resources, most 3rd party providers cannot perform to the same standards as ‘true cloud’. Ask them about their up-time performance, contractual up-time guarantees, security and privacy certifications, EU Safe Harbor certification and SSAE Type II audit completions.
  • Overbuying License Agreements, when you go to purchase licenses you may have to estimate how many you need. If you buy too little, you may under-perform because you needed more in order to work successfully. If you buy too many then you company may be wasting a lot of money.
  • Financials of the hosting firm, what if your service provide goes out of business. Firstly, you will need to find a new service provider fast, with the possibility of lost data or even have to rethink your entire IT system plan again. Even still, what if the new service provider goes out of business in the future?

If you would like to find out more about ‘True Cloud’ please contact the Oloco Team on 02037357950 or leave a message through our contact form here.